NASSCO To Retrofit
Three Tankers At Total
Cost Of $19.8 Million

The Maritime Administration
and Maritime Subsidy Board have
authorized execution of the agency's
first construction-differential
subsidy (CDS) contracts for the
retrofitting of tankers in compliance
with the Port and Tanker
Safety Act of 1978. The CDS,
e s t i m a t e d to total $9,153,273,
would aid in the reconstruction
of three 89,700-dwt tankers owned
by s u b s i d i a r i e s of the Berger
Group, at the National Steel and
Shipbuilding Company in San Diego.
Specifically, the c o n t r a c ts
call for the installation of crude
oil washing systems and other
retrofits required under the act.
The vessels and companies involved
are the Rose City, owned
by Northwest Shipping Corporation
; the Beaver State, owned by
Yeon Shipping Corporation; and
the Worth, owned by Worth Oil
Transport Company. All three
were built and are being operated
with the assistance of Federal
subsidy.

The Beaver State and Rose City
currently hold 20-year "hell-orhigh-
water" time c h a r t e r s and
are sub-time-chartered to Texaco.
The Worth has a 10-year time
charter with Texaco. Assuming
the vessels meet the requirement
of the 1978 act, all three are
guaranteed revenue through 1986.
The Board approved a negotiated
fixed price of $6,607,291 for
reconstruction of each vessel. Of
that total, the Government will
pay 46.17 percent, or $3,051,091
in CDS.

The modifications involved have
been approved by the Department
of the Navy as suitable for use
in time of war or national emergency.
The Navy has also suggested
that eight additional features
would enhance the usefulness
of the vessels for national
defense. These include alongsidefueling
at sea and high-line transfer;
astern fueling at sea; prohibition
of grey cast iron; nuclear,
biological, and chemical
washdown, MARISAT communications
e q u i p m e n t ; maximum
clear-deck area; steering control
systems; and steering gear emergency
electrical supply. The Board
approved NASSCO's n e g o t i a t ed
fixed prices totaling $816,508 to
cover the cost of these national
defense features.

The Berger Group has similar
applications pending for CDS assistance
in retrofitting four other
tankers.